Category: Equities

Meristem Wealth Management Limited has listed its twin Exchange Traded Funds (ETFs) on the Nigerian Stock Exchange (NSE), paving the way for existing and new investors to trade on the open-ended fund.

A total of 50 million units at N10 each of Meristem Growth Exchange Traded Fund and Meristem Value Exchange Traded Fund were admitted to the official list at the NSE.

The ETFs provide investors with opportunity to diversify their assets and benefit from professionally managed funds.

Meristem Wealth Management Limited, the wealth management subsidiary of Meristem Group, had offered 50 million units of N10 each in its Meristem Growth Exchange Traded Fund and another 50 million units of N10 each under its Meristem Value Exchange Traded Fund.

The Meristem Growth Exchange Traded Fund tracks growth stocks on the Nigerian stock market while the Meristem Value Exchange Traded Fund tracks value stocks, providing investors opportunities to earn above average returns from the basket of underlying stocks.

Meristem explained that the ETFs are style indices which provide investors with a wide array of diversified stocks, professionally selected after satisfying the criteria.

Managing Director, Meristem Wealth Management, Sulaiman Adedokun; said Meristem is seeking new and innovative ways to create wealth opportunities for clients.

He explained that as a way of adding unique value to investors, Meristem Growth ETF is designed to track growth stocks while Meristem Value ETF will track value stocks.

“This strategy avails investors a dual purpose, with an investment style that allows them to meet specific need using abroad product portfolio,” Adedokun said.

He noted that the Meristem ETF can be described as “The Jack of the Trade” as it offers investors opportunities to achieve their investment desires in the equity market while shielding them from excessive risk.

According to him, the indices being tracked by the ETFs are reviewed semi-yearly, to ensure that all stock selected under each index keeps delivering on their promise.

Head, Asset Management, Meristem,Taiwo Yusuf explained that ETFs earn the underlying dividends of their constituent stocks and the dividends are paid net of all fees.

Head, Wealth Management, Meristem, Damilola Hassan added that Meristem ETFs offer hassle-free and cost-effective investment option to investors.

“With a minimum of N10,000, investors can have access to a wide range of stocks across different sectors including banking, industrial goods, conglomerate, agricultural sectors and a host of others that meet their investment style criteria,” Hassan said.

Netherlands-baseD Heineken N.V. has acquired additional equities stakes in Nigerian Breweries in deals valued at about N138.1 million. The latest acquisitions were struck between September 8 and 11, 2020.

Latest insider transaction reports at the Nigerian Stock Exchange (NSE) showed that Heineken, through Heineken Brouwerijen B.V, acquired 3.35 million ordinary shares of 50 kobo each in Nigerian Brewderies (NB) at an average price of N41.16 per share.

It had between August 27 and August 31, 2020, acquired 0.192 million ordinary shares of 50 kobo each of NB at an average price of N37.13 per share.

These acquisitions came after The Nation reported that Heineken had bought additional stakes to increase its majority shareholding in Nigerian Breweries to 55.9543 per cent.

Prior to the recent streaks of acquisitions, Heineken’s holdings in Nigerian Breweries were held by Heineken Brouwerijen BV, 37.76 per cent; Distilled Trading International BV, 15.47 per cent and Heineken International BV, which held 2.72 per cent.

Read Also: Nigerian Breweries grosses N151b

With the initial acquisitions, Heineken Brouwerijen BV’s holding increased to 37.7643 per cent.  The latest acquisitions represented 0.0024 per cent equity stake, increasing Heineken Brouwerijen BV’s shareholding to 37.7667. Thus, Heineken’s majority shareholding now stands at 55.9567 per cent, based on available reports.

The Nation had reported that market insiders expected Heineken to buy more shares noting that attractive valuation, foreign exchange illiquidity that trapped several foreign investors and the prospects of the Nigerian market were making multinationals with Nigerian know-how to dig in further.

The new share acquisitions are significant for the multinationals. Every additional share increases Heineken’s control on the Nigerian subsidiary. The single largest domestic stake in the widely dispersed Nigerian Breweries’ shareholding is 0.44 per cent held by Odutola Holdings Limited.

Analysts had said the new acquisitions by multinationals were futuristic, especially with the prospects of a single large African market envisaged by the African businesses under the African Continental Free Trade Area (AfCFTA).

The AfCFTA seeks to create a single continental market for goods and services of African origin with free movements across the member countries. Nigeria has already signed the AfCFTA agreement.

By Taofik Salako Deputy Group Business Editor

Nestlé S.A, world’s largest food company, has continued its recent spree of buying shares of its Nigerian subsidiary, Nestle Nigeria Plc, through the secondary market.

Barely few weeks after acquiring additional equity stake valued at about N747.54 million, Nestle S.A has again acquired new shares worth about N287 million, bring the total stake on Nestle Nigeria’s shares to more than N1 billion.

In what underscored the attractiveness of the Nigerian shares to the multinational, Nestle S.A struck the latest deals at a premium of N1,249.65 per share compared with previous transaction price of N1,174.67 per share. In the latest acquisition, a deal was struck for 229,697 ordinary shares of 50 kobo each.

Earlier, Nestle had acquired 636,384 ordinary shares of 50 kobo each at N1,174.67 per share. The transaction increased the Swiss multinational food and drink company’s majority shareholding in Nestle Nigeria by 0.08 per cent.

Nigeria is a key market for Nestle where the stock and the brands have sustained decades of market leadership. Nigeria and the rest of other Sub-Saharan Africa (SSA) recorded double-digit growth in the first half, driven by real internal growth.

Nestle’s half-year results for 2020 showed that SSA was the best-performing segment under the groups’ Asia, Oceania and sub-Saharan Africa (AOA) zone.

Read Also: Nestlé S. A. acquires more stake in Nigeria’s subsidiary

“We expect full-year organic sales growth between 2.0 per cent and 3.0 per cent. The underlying trading operating profit margin is expected to improve. Underlying earnings per share in constant currency and capital efficiency are expected to increase. This guidance is based on our current knowledge of COVID-19 developments and assumes no material deterioration versus present conditions,” Nestle SA stated in the group’s six-month report.

Key extracts of the interim report and accounts of Nestle Nigeria for the half year ended June 30, 2020 showed that turnover was steady at N141 billion in first half 2020 as against N141.9 billion in comparable period of 2019. Profit after tax stood at N21.8 billion in first half 2020.w

Managing Director, Nestlé Nigeria Plc, Mauricio Alarcon, said the results illustrated the resilience of the company.

According to him, amidst the on-going COVID-19 pandemic, Nestlé Nigeria has delivered consistent results in terms of revenue while exchange rate variations and increase in the price of some key materials have affected profitability.

“While it is still early to assess the impact of this crisis, we are fully confident in our people’s agility and deep commitment to overcome challenges and continue to deliver value for our shareholders and for society. Going forward, we will remain focused on three key priorities which include safeguarding the health and wellbeing of our people, ensuring business continuity to meet consumer needs and supporting our communities,’’ Mauricio said.

By Taofik Salako, Deputy Group Business Editor

The management of Jaiz Bank Plc has projected that the flagship non-interest bank will post a gross income of N5.41 billion in the fourth quarter with average pre-tax profit per average sales expected at 13.03 per cent.

In a regulatory filing at the Nigerian Stock Exchange (NSE), Jaiz Bank, Nigeria’s first non-interest bank and the only publicly quoted alternative finance institution, predicted that profit before tax will be N705.37 million while profit after tax is expected to close the three-month period at N634.83 million.

The forecast, signed by Jaiz Bank’s Chief Financial Officer, Abdulfattah Amoo, indicated that the bottom-line performance was predicated on financing income of N4.94 billion and financing expenses of N1.39 billion, leaving net revenue from funds at N3.55 billion.

Within the three-month period between October and December 2020, the bank  is expecting other incomes of about N467.45 million, which is expected to push net operating incomes to N3.85 billion. With operating expenses at N3.14 billion and taxes projected at N70.54 million, pre and post tax profits are expected to close the period at N705.37 million and N634.83 million.

Jaiz Bank seeks to achieve an overall vision of being the leading non-interest financial institution in Sub-Saharan Africa (SSA) with total income expected to be about N81.17 billion and profit after tax at N11.09 billion for the five-year period between 2018 and 2022. The bank outperformed its forecast for the 2019 financial year and the latest forecast fourth quarter 2020 indicated it may surpass the 2020 full-year targets.

According to the forecasts, gross income is expected to rise to N15.73 billion, N19.27 billion and N23.51 billion in 2020, 2021 and 2022. Profit before tax is projected to rise to N3.01 billion, N4.03 billion and N5.47 billion in 2020, 2021 and 2022. After taxes, net profit is expected to rise to N2.11 billion in 2020 and rise consecutively to N2.82 billion and N3.83 billion in 2021 and 2022.

Under the plan, the balance sheet of the bank is expected to increase consecutively over the years. Total assets is projected at N182.6 billion, N220.02 billion and N262.80 billion in 2020, 2021 and 2022 respectively. Deposit is projected to rise consecutively to N142.81 billion, N177.09 billion and N216.05 billion in 2020, 2021 and 2022. Shareholders’ fund is also projected to increase to N35.23 billion by 2022.

Managing Director, Jaiz Bank Plc, Mr. Hassan Usman, has said overall vision of the bank is to become the leading non-interest financial institution in Sub-Saharan Africa.

He said the bank has been positioned to sustain its growth trajectory, pointing out that the bank has the necessary resources to achieve its growth targets.

Usman said the bank’s growth strategy of focussing on the real sector, though painstaking, will ensure sustainable growth and better returns over the years.

According to him, Jaiz Bank wants to develop small and medium enterprises (SMEs), grow with them and support them not only for profit making but to ensure the country achieves real growth.

“We shall continue to internally develop new customers, new markets and new product for both our physical and virtual channels. We remain committed to continuous up-scaling of our governance mechanism to meet the highest operating standards. Cost efficiency is at the heart of our value creation model. We shall strive to be a low cost operator,” Usman said.

He noted that while the bank would continue to expand its operations across the country by opening more branches, it will significantly leverage on technology to reach the nooks and crannies of the country and bring the semi-banked and unbanked population into the formal economy.

Jaiz Bank was created out of the former Jaiz International Plc which was set up in 2003 as a Special Purpose Vehicle (SPV) to establish Nigeria’s first full-fledged non-interest bank. The bank is owned by some 27,000 shareholders including the Islamic Development Bank (IDB). It obtained a regional operating license to operate as a non-interest bank from the Central Bank of Nigeria (CBN) on November 11, 2011 and began full operations as the first non-interest bank in Nigeria on January 6, 2012. In 2016, it obtained the national banking license from the CBN and started to rapidly spread its network across the country.

Jaiz Bank recorded another milestone on February 9, 2017 as the first non-interest financial institution to be listed on the NSE with the admission of the entire issued share capital of the bank to the main board of the Exchange.

By Taofik Salako, Deputy Group Business Editor

An advisory services firm with indirect relationship with the Group Managing Director of UAC of Nigeria (UACN), Mr Folasope Aiyesimoju, has acquired about 1.9 per cent equity stake in the conglomerate in insider share dealing valued at about N312.97 million.

AM & P Advisory Services, which has an indirect relationship with Aiyesimoju, in many transactions through the Nigerian Stock Exchange (NSE), acquired a total of 55.1 million ordinary shares of UACN at an average price of N5.68 per share. This represents 1.9 per cent equity stake in the conglomerate.

Aiyesimoju’s company, Themis Capital Management, had earlier this year acquired more shares in the conglomerate in a transaction that strengthened Themis Capital Management’s position as the largest single shareholder of the widely owned 141-year-old conglomerate.

Transaction reports had indicated that Themis Capital Management acquired about 0.5 per cent new equity stake in UACN in several deals involving 14.28 million ordinary shares of 50 kobo each valued at an average price of N10. The shares, valued at N142.8 million, were also acquired through the NSE.

Aiyesimoju is the founder of Themis Capital Management, an investment firm focused on concentrating capital and talent on high-potential opportunities in Sub-Saharan Africa. Aiyesimoju assumed position as UACN’s GMD on April 1, 2019.

Themis Capital Management and two others- Stanbic IBTC Nominees and Blakeney GP 111 Ltd had in 2017 emerged as the three major shareholders in UACN with more than five per cent equity stake. Prior to this, Stanbic Nominees Nigeria was the only shareholder with more than five per cent equity stake.

The 2017 post-recapitalisation filing had indicated that Themis Capital Management had the largest equity stake of about 8.06 per cent. Stanbic IBTC Nominees had 7.8 per cent while Blakeney GP 111 Limited had 5.8 per cent.

Blakeney LLP recently sold its equity stake in deals valued at N973.52 million. A breakdown of the divestment transactions showed that Blakeney had in April 2020 sold 10 million ordinary shares of 50 kobo worth N62.02 million. It continued in May 2020 with sale of 25 million shares worth N171.5 million. It closed first half with the sale of 40 million ordinary shares of 50 kobo each worth N280 million in June 2020. It recently closed many deals for the sale of 80 million shares worth N460 million.

Nigeria’s oldest surviving business, UACN started business in Nigeria in 1879, well ahead of the 1914 amalgamation that created the current Nigerian nation. With 10 subsidiaries in key sectors of the Nigerian economy, the UACN Group consists of several active companies spreading through manufacturing, services, logistics and real estate sectors of the Nigerian economy. These include four quoted subsidiaries – CAP Plc, UACN Property Development Company (UPDC) Plc, Livestock Feeds and Portland Paints and Products Nigeria Plc; in addition to the parent company, UACN, which was listed in 1974. UPDC Real Estate Investment Trust, which is also quoted on the NSE, is a subsidiary of UPDC.

UACN acquired Livestock Feeds and Portland Paints in 2013. Other members of the group included UAC Foods Limited, UAC Restaurants Limited, MDS Logistics Plc, Warm Spring Waters Nigeria Limited, Grand Cereals Limited, and Unico CPFA Limited.

By Taofik Salako, Deputy Group Business Editor

Sterling Bank Plc has extended coverage of its Farmers’ Radio programme to cover the six geopolitical zones of the country, following its wide acceptance and success in the northern part of the country.

Since its debut in 2018, the Farmers’ Radio show is the only agriculture-related radio show sponsored by a commercial bank in Nigeria. It started with a pilot in three northern states.

Group Head, Agric and Solid Minerals Finance, Sterling Bank, Mrs. Bukola Awosanya said this year’s edition of the seasonal radio programme will air for 13 weeks in major languages across all geo-political zones of the federation.

Mrs Awosanya said each broadcast will last for about 30 minutes, with resource persons from research institutes and Development Financial Institutions (DFIs), among others being invited to discuss technicalities, innovations and available opportunities in agribusiness finance, as well as some dos and don’ts of modernised farming techniques.

She added that the radio programmes are structured like business rooms where needs-based discussions are held with the purpose of facilitating partnerships as well as drawing government and private investors’ attention to specific value-chain related interventions to enhance business opportunities across agricultural finance and the value chain.

According to the Group Head, the programme will be broadcast on local radio stations across key agribusiness hubs in Nigeria to conceptualise, produce and broadcast unique programmes aimed at identifying and resolving the constraints faced by farmer groups and processors alike.

On the choice of broadcast medium, Awosanya pointed that radio remains the most widely used media platform outside of major urban areas, and a key medium for reaching people in areas with limited media options and penetration.

On specific broadcast partners and regions, Awosanya said the Northwest geo-political zone will be covered by Kano Arewa FM, Katsina Companion FM and Kaduna FRCN FM; the Northcentral by Abuja Aso Radio, Kogi Grace FM, Benue Airwaves FM and Plateau Peace FM while Bauchi Globe FM, Adamawa Gotel FM and Borno Radio will broadcast to the North Eastern part of the country.

Ogun Paramount FM (Abeokuta), Osun Orisun FM (Ile-Ife), Oyo Splash FM (Ibadan) and Ekiti Golden Voice FM will air the program in the South West geo-political zone while the South East geo-political zone will receive broadcasts from Imo Orient FM and Abia Broadcasting Corporation, with the South South geo-political zone to be covered by DBS Melody FM, Akwa-Ibom Atlantic FM and Cross River Hit 95.9FM.

The principal objective of this season’s schedule include increasing and maintaining awareness of financing opportunities available to smallholder farmers, aggregators, off-takers, stakeholders and observers across the agribusiness value-chain.

The programme will also serve as a platform for creating new commercial opportunities by driving market linkages, enabling multi-stakeholder interactions across the value chain with the goal to improving efficiency and output, especially among smallholder farmers.